Asia stocks rise on stimulus hopes; Europe down

SEOUL, South Korea -- Asian stock markets were boosted Monday by expectations of economic stimulus in China after manufacturing continued to weaken in March. European shares fell after a eurozone manufacturing survey reinforced expectations of a slow recovery.

Germany's DAX fell 0.8 percent to 9,273.17 and France's CAC 40 dropped 0.8 percent to 4,299. Britain's FTSE 100 shed 0.4 percent to 6,532.48. A survey of factory purchasing managers in countries using the euro showed that the region's economic recovery was fitful in the first quarter. The headline index fell slightly to 53.2 in March, a level indicating very modest growth.

Wall Street was set for gains after falling on Friday. S&P 500 futures were up 0.2 percent at 1,861 and Dow Jones futures gained 0.2 percent to 16,245.

Earlier in Asia, stock markets closed higher as investors bet that China would introduce economic stimulus measures after manufacturing declined further in March.

The preliminary version of HSBC's purchasing managers' index for China dropped to 48.1 in March from February's 48.5. Readings below 50 on the 100-point scale indicate a contraction in activity. Factory output shrank at the fastest clip in 18 months.

The worse-than-expected result suggested that the slowdown in the world's No. 2 economy is deepening, J.P. Morgan's chief China economist Haibin Zhu said in a report.

Beijing will likely introduce a series of pro-growth measures focusing on accelerating fiscal spending on infrastructure and reforms, the report said.

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